New Mexico Federal Farm Subsidies

Hans Tucker Alsup

Agricultural Subsidies

• Subsidies are money the government hands out, similar to a grant• Agricultural subsidies are used to • Support Agricultural business (Agribusiness)• Fund their revenue, manage the supply of product• Influence the economical aspects of agricultural business

• Money for subsidies comes from taxpayers, how does that make you feel?

Agricultural and Farming Subsidy Requirements• farm has to be currently producing a crop and has to have all

shareholders and owners working, providing land, or managing the farm• Every partner or stockholder and even a member that has an

ownership interest has to provide management and or labor frequently and on a regular basis in order to be qualified for the farming subsidies

Agricultural and Farming Subsidy Requirements• If these people fail to meet one of those requirements, they will not

qualify for the program and their payments will be reduced accordingly to the share held by the stockholder or member of the farm• If you are the only owner of the land and company this is some

terrific news for you

Not everyone receiving them qualify for a subsidy• Some people forge paperwork or lie in order to receive money that

they may not have been eligible for“GAO found that of the 1.8 million individuals receiving farm

payments from 2003 through 2006, 2,702 had an average adjusted gross income (AGI) that exceeded $2.5 million and derived less than

75 percent of their income from farming, ranching, or forestry operations, thereby making them potentially ineligible for farm

payments.”“Nevertheless, USDA paid over $49 million to these individuals.”

How Subsidies can be Useful

• Subsidies can be beneficial in maintaining a stable agricultural economy.• Can also be useful for helping a new or struggling farm owner

getting started

Steps the Government should take in order to stop wasteful spending• A lot of the money for subsidies is either going to people who do not

meet eligibility requirements, or who do not need the money at all because their business is turning a profit without the help of the government• To ensure that the money for these programs is being used widely

they must make a more strict selection process

Steps the Government should take in order to stop wasteful spending• According to the Government Accountability Office, the United

States Department of Agriculture (USDA) does not have efficient management controls• To solve this the government must• Find or hire accountants to run audits on the applicants• Create more strict rules and laws to ensure that the people applying truly

deserve the taxpayer’s dollars

The Effects of the Government Performing These Actions• The government could benefit multiple ways from these actions

including• More agricultural product overall• Increased trade and foreign aid• Reduce wasteful government spending

In Conclusion

• Subsidies are given to farms in order to supplement their income and incentivize them in order to keep farming• Every time a farm fails, the subsidies are used in order to bail them

out and have them keep farming but that uses the tax payers’ money• Not fair to many taxpayers• There needs to be drastic changes to the way that subsidies and

farms are handled

Bibliography

Office, United States Government Accountability. GAO Report to the Ranking Member, (n.d.): n. pag. Gao.gov. GAO, Oct. 2008. Web. 2 May 2015"Fact Sheets." Fact Sheets. FSA, Dec. 2009. Web. 2 May 2015Database. Environmental Working Group, n.d. Web. 02 May 2015.